- Franchise Agreement - This is a legal contract between the MMI Group and the franchisee spelling out the rights and obligations of both parties, terms and conditions, including those for termination and the validity period. This agreement is drawn up by the MMI Group's appointed lawyers.
- Tenure or Period of Contract - This is the period of validity of the legal contract between the MMI Group and franchisee.
- Compliance with Contract - To ensure that franchisees do not conduct themselves in a manner that affects the image and business of other parties with the MMI Group, franchisees are required to comply with the terms and conditions as stated in the franchise agreement.
- Initial Fee - This is the upfront payment that the franchisee must make to the MMI Group to obtain the rights to the business format and trade or services mark for a specified time period. In return the MMI Group will provide service related to the design and layout of the premises and assistance in launching of the operation, to facilitate an early conversion to a franchise outlet.
- Royalty/Management Fee - An ongoing monthly fee, made by the franchisee to the MMI Group, usually based on a percentage of the gross monthly sales. It could also be a fixed fee or a variation of one or both. In return, the MMI Group will provide management services, including joint advertising and promotional campaigns, updating of procedures, continual new product development, etc.
- Montessori Material - The Franchisee is expected to purchase standard montessori material from MMI Group.
- Renovation Cost/Rental - The cost that will be incurred by the franchisee to convert the premises to the image and layout specified by the MMI Group. This cost has to be borne at the beginning of the franchise relationship. Franchisee will need to have sufficient capital to pay this amount upfront.
- Working Capital - Franchisees must set aside sufficient funds to pay for normal business overheads likes utility bills, salaries and purchase of goods and services.
- Payment Terms - The period by which franchisees have to pay the MMI Group for goods and services rendered is normally specified by the MMI Group under payment terms.